EMERGING MARKETS-Latam currencies drop on China turmoil; Mexico peso hits record low

jueves 7 de enero de 2016 10:27 GYT
 

By Bruno Federowski
    SAO PAULO, Jan 7 (Reuters) - Latin American currencies
weakened on Thursday after China's government let the yuan
decline further, triggering fears that the world's largest
consumer of commodities might experience a steeper slowdown.
    The move sparked a 7 percent slump in Chinese equities,
resulting in an automatic trading suspension for the second time
this week. Commodity prices followed suit, dragging along
currencies from export-oriented economies. 
    The Mexican peso set an all-time low of 17.7165 to
the dollar, while the Colombian peso tumbled almost 2
percent as oil prices fell to nearly 12-year lows.
    The Chilean peso dropped to its lowest against the
dollar since April 2003 as copper prices slipped.
    "Chinese authorities are baffled and, with the lack of
transparency, markets tend to overreact to any sign" of
weakness, said economist Pedro Tuesta of 4Cast Inc in
Washington.
    The Brazilian real also retreated, but yields paid on
short-term interest rates futures <0#2DIJ:> fell. Some traders
doubted the central bank's willingness to raise benchmark rates
during the worst recession in a quarter-century and persistently
high inflation.
    Data on Thursday showed Brazil's industrial output dropped
2.4 percent in November, its sharpest monthly decline since
December 2013. 
    
    Latin American stock indexes and currencies at 1355 GMT:
 Stock indexes                                 daily %   YTD %
                                                change  change
                                     Latest             
 MSCI Emerging Markets                 739.82    -2.63   -4.32
 MSCI LatAm                           1714.77    -2.07   -4.31
 Brazil Bovespa                      40891.47    -2.11   -5.67
 Chile IPSA                           3575.46    -1.09   -2.85
 Chile IGPA                          17700.67    -0.93   -2.48
                                                              
 Currencies                                    daily %   YTD %
                                                change  change
                                                        
                                       Latest           
 Brazil real                           4.0505    -0.77  -34.39
 Mexico peso                            17.69    -0.92  -16.65
 Chile peso                             720.7    -0.93  -15.86
 Colombia peso                        3307.63    -1.65  -27.80
 Peru sol                              3.4221    -0.20  -12.95
 Argentina peso (interbank)           13.8500     0.29  -38.27
                                                        
 Argentina peso (parallel)              14.38    -0.63   -2.64
                                                        
 
 (Editing by Lisa Von Ahn)